March 14, 2022
Canada announces update to sanctions related to Russia
The Department of Finance Canada issued the Most-Favored-Nation (MFN) Withdrawal Order (2022-1) on March 3, removing Russia and Belarus from entitlement to MFN treatment under the Customs Tariff effective March 2. The issuance of this Order results in the application of the General Tariff for goods imported into Canada that originate from Russia or Belarus. Under the General Tariff, a tariff rate of 35% ad valorem will now be applicable on virtually all imports originating from Russia and Belarus. The Order is implemented under section 31 of the Customs Tariff and applies for 180 days unless extended by a resolution adopted by both Houses of Parliament.
A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.
Full text of Tax Alert